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GBA Inc. wishes to raise $100,000,000 by issuing a 10 Year Eurobond. The treasurer of GBA is working with an investment bank to arrange the

GBA Inc. wishes to raise $100,000,000 by issuing a 10 Year Eurobond. The treasurer of GBA is working with an investment bank to arrange the issue. The bonds will be issued in Luxemburg.

Time to maturity

US (%)

1

5.05

2

4.89

3

4.61

4

4.44

5

4.27

6

4.22

7

4.16

8

4.07

9

4.03

10

3.98

GBA is able to issue USD-denominated bonds at 3.75% coupon interest and $1000 nominal value and sell at par value incurring a 1.75% fee on the gross value of the issue.

a) How much is the principle and net fund?

b) what is the coupon payments?

c) Estimated the AIC bonds

d) Estimated the credit Spread

Please submit the solution in an excel sheet

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